Yeah that's how the financial sector has been run and a lot of the reason it ran into the ground.
I'm sick of repeating this and I only do it because I hope someone reads it for once and makes use of it.
The government/free market debate has been at the epicenter of talk since 2009. People are ultimately trying to justify why we are in such a position. I'm here to tell you that it was inevitable. Global imbalances can explain almost anything. It has little if anything to do with government regulation. Trying to justify that is pretty silly. The US literally produces almost nothing the world wants anymore. We produce no cars being sold afar, we produce much fewer planes than used to be bought, etc etc. The past few decades we have seen a rise in investment speculation ie bubbles. Our leading pseudo-economist woozy tries to get everyone to do just that (invest in commodities that ultimately produce nothing). Investors are no longer investing in companies that have growth potential to produce something. We merely speculate on currency derivatives and housing bubbles. Unfortunately I can't quote a statistic for this but I can tell you it is scary at how much investing has changed.
Meanwhile, China is obtaining property, plants, and producing. Therefore their products are much more attractive because of labor costs and other factors. Albeit, their currency manipulation will come back to haunt them soon, hopefully. So here we sit, a capital intensive country that doesn't produce capital intensive goods. The leontief paradox is at work. Luckily we still cling strongly onto our vast array of medical technology we still produced. That is coming into jeopardy quickly though.
Call it the curse of capitalism if you will. When one country runs out of resources, another steps in to take its place. This is the very system we owe for our vast technology, but the very same system that will plummet our standard of living when they are done.